Vancouver, June 13, 2002---Dundee Securities Corporation and DRC Resources Corporation have entered into a best efforts private placement agreement for an equity financing of up to $4,500,000 for Afton Copper-Gold Project. Terms of the agreement as listed below are subject to regulatory approval:
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Offering: Private placement, on a best efforts basis, of
Units and Flow-Through Common Shares. Each Unit
will consist of one (1) Common Share and
one-half (1/2) Common Share Purchase Warrant.
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Issue Price: $3.00 per Unit.
$3.00 per Flow-Through Common Share.
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Offering Size: Up to $3,000,000 or 1,000,000 Units or
Flow-Through Common Shares with a maximum
of 700,000 Flow-Through Common Shares.
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Common Share Each whole Common Share Purchase Warrant
Purchase Warrant: will entitle the holder to purchase one (1)
Common Share at a price of $3.75 per Common
Share for a period of twelve (12) months from
the Closing Date as defined below.
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Option: The Agents have the option to place up to an
additional 500,000 Units at any time prior to
the Closing Date.
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Use of Proceeds: The gross proceeds of the Flow-Through Common
Shares shall be used for the development of the
Company's Afton Copper-Gold Project in British
Columbia. The net proceeds of the Units shall be
used for general working capital purposes.
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Agents' Compensation: The Agents will be paid a fee equal to 8.0%
of the gross proceeds raised in the Offering
payable in cash from working capital. The
Agents will also receive broker warrants
("Broker Warrants") entitling them to purchase
that number of Common Shares which is equal to
10.0% of the number of Units and Flow-Through
Common Shares sold. The Broker Warrants will
expire twelve (12) months from the Closing Date.
The exercise price for the Broker Warrants will
be $3.00 per Broker Warrant.
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Resale Restrictions: The Common Shares forming part of the Units,
the Common Shares issuable upon the exercise of
the Warrants and the Flow-Through Common Shares
will be have a four month hold period which will
run from the Closing Date.
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Closing Date: On or about July 4th, 2002
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Agents: Dundee Securities Corporation and other dealers
appointed by Dundee Securities Corporation.
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The Company will pay a cash finder's fee on the closing of the financing equal to 5% of the gross proceeds.
On behalf of the Board of Directors
"John H. Kruzick"
John H. Kruzick, President
DATE: June 13, 2002
Shares Issued: 8,483,766 common shares
U.S. Rule 12g3-2(b)Exemption
Website: www.drcresources.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the release.
CAUTIONARY NOTE:. The company relies on litigation protection for "forward-looking" statements.
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